Contractual bailin

Bank regulation - recapitalisation - Resolution Authority.

Bailin refers to the use of private sector money, rather than public money, to deal with a failed or failing bank.

Under bailin, private sector creditors of the bank suffer a share of the bank's losses.

Contractual bailin refers to a provision in the terms of certain bank debt instruments that are converted automatically to equity or written off, if conditions specified in the related contract obtain.

See also

• Bailin
• Bailout
• Capital
• Capital adequacy
• Contingent convertible capital
• Contract
• Eligible liabilities
• Equity
• Loss absorbing capacity
• MREL
• Multiple Point of Entry
• Provision
• Recapitalisation amount
• Recapitalise
• Regulation
• Resolution Authority
• Resolution weekend
• Secondary Loss Absorbing Capital (SLAC)
• Single Point of Entry
• Statutory bailin
• TARP